Kansai Nerolac Q4 Review - Input Cost Pressure To Impact Margins: IDBI Capital
A laborer pours yellow water-based paint into a plastic jar. (Photographer: Dhiraj Singh/Bloomberg)

Kansai Nerolac Q4 Review - Input Cost Pressure To Impact Margins: IDBI Capital

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Kansai Nerolac Paints Ltd. result was below our estimates due to higher than expected raw material cost pressure.

Business recovery remained strong driven by resilient volume growth and price hikes (driven by input cost pressure).

In the international market; the company improved operating profit margins in Nepal and Bangladesh while reduced Ebitda loss in Srilanka during FY21.

Raw material cost inflation remained a major concern.

However, the company has been able to take price hike in decorative (by 2.5%) and industrial coatings (by 3-4%) businesses to offset inflation.

Management expects the raw material cost to subside due to tepid demand.

Click on the attachment to read the full report:

IDBI Capital Kansai Nerolac Q4FY21 Result Update.pdf

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